Why is it more difficult to attain a personal loan over a credit card?

They are different types of credit Archer.
Appreciate that a personal loan has a set term whereas a credit card is a form of continuous credit with lower monthly payments.

Hi Archer, that is a great question.
The thing to always keep in mind is the interest rate (greedy bank profit) versus the risk to the lender (that you will run away)
In the case of credit cards there major lenders make huge profits because most charge around 20% per year and if you pay the minimum 3% you are often looking at taking longer to pay off the debt than you will live (they have you forever)

With personal loans the lender only gets you for a few years, usually 5-7 and the competition has forced rates down close to 10%

Of course if you take a higher rate personal loan like the short term money lenders eg Nimble, Cash Converters, Wallet Wizard who’s interest rates are again, closer to 20% you will find it very easy to get a loan.

Rate 4 Risk.
Higher rate = easier loan approval
Lender makes more money = cares less

Hope the above is helpful.

Personal loans are quite easy to get however the loan purpose is limited - eg it can't be for building or investment

We can get personal loans within 24hours !

www.keyfinance.net.au

Do consider the new type of lending in the market for amounts less than $50,000 known as peer-to-peer lending. There are a few players that play in this space and it can result in lower interest rates than personal loans and sometimes more flexible terms.

If you have anything else on your mind regarding this loan let me know or if tou want to discuss the best option for you to obtain finance. Happy to try help.